One-glance verdict
Overvalued
$0.04 our estimate vs market $0.89
Wall Street consensus: $1.81 (4,465.6% higher than our fair-value estimate)
2141% above our estimate, beyond the bull case
Fundamentals snapshot
eHealth, Inc.
EHTH · NMS · Financial Services · Insurance Brokers
Current price
$0.89
52-week range
$0.83 - $5.89
Market cap
$28.23M
Balance sheet
Watch
6.37x Adequate
Net debt $31.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Returns 2.9% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -20.5% to -81.6% over 3 years.
- Risk Insider ownership is only 7.7% (peer median: 12.4%).
What this company does
eHealth, Inc.
eHealth operates an online marketplace, like a travel website but for health insurance, where people can compare and enroll in different plans. The company makes most of its money from commissions paid by insurance carriers, particularly when it helps seniors sign up for Medicare plans. This is important because the company's success relies on attracting a large number of customers during specific enrollment periods each year and navigating complex government regulations.
How the company got here
Founded in 1997, eHealth was a pioneer in making health insurance easier to access by using the internet. A key moment was in 1998 when they completed the first-ever online sale of a health insurance policy. The company grew by creating online tools that let people compare different insurance plans, a big change from the old paper-based way of doing things. Over the years, it expanded significantly into the Medicare market, which helps people aged 65 and older get health coverage, and this has become a major part of its business.
What it actually does
eHealth operates as an online marketplace for health insurance, much like a travel website where you can compare flights from different airlines. It provides a website and call center where individuals, families, and small businesses can compare health insurance plans from over 180 different insurance companies and enroll in the one that best suits their needs. Licensed insurance agents are available to help customers understand their options and choose a plan, either online or over the phone. The company earns money through commissions (a fee paid by the insurance company for selling their plan) for each policy it helps to sell.
Medicare
This is the company's largest business segment, focusing on people who are eligible for Medicare, the U.S. government's health insurance program for those 65 and older. eHealth offers various Medicare-related plans from private insurers, such as Medicare Advantage, Medicare Supplement, and prescription drug plans. When someone enrolls in a Medicare plan through eHealth, the insurance company pays eHealth a commission. This part of the business has been the main focus of the company's growth.
Employer and Individual
This segment serves people under 65 who need to buy their own health insurance, as well as small businesses that want to offer coverage to their employees. It provides a marketplace for individual and family health plans, along with other related products like dental and vision insurance. Similar to the Medicare segment, eHealth earns commissions from insurance companies for selling these plans. While this was the original focus of the company, it is now a smaller part of the overall business compared to Medicare.
What management is betting on now
The company's current strategy is to build long-term relationships with its customers, rather than just focusing on a one-time sale. They want to be a trusted advisor for people throughout their lives, from their working years into retirement. This involves expanding the types of products they offer and using technology like artificial intelligence (AI) to provide more personalized guidance. The goal is to increase customer loyalty and what's known as lifetime value (the total revenue a company can expect from a single customer).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-30.28M
FY2024 Q4
$-28.29M
FY2025 Q1
$76.81M
FY2025 Q2
$-42.79M
FY2025 Q3
$-25.53M
FY2025 Q4
$-36.09M
FY2026 Q1
$35.61M
FY2026 Q2
$-5.44M
Revenue
$33.57M
Net income
$-23.59M
Diluted EPS
-1.18
Operating cash flow
$-4.96M
Free cash flow
$-5.44M
Fetching…
Sources
Revenue
$88.02M
Net income
$-4.71M
Diluted EPS
-0.58
Operating cash flow
$35.77M
Free cash flow
$35.61M
Fetching…
Sources
Revenue
$326.24M
Net income
$87.18M
Diluted EPS
2.43
Operating cash flow
$-35.95M
Free cash flow
$-36.09M
Fetching…
Sources
Revenue
$53.87M
Net income
$-31.69M
Diluted EPS
-1.46
Operating cash flow
$-25.31M
Free cash flow
$-25.53M
Fetching…
Sources
Revenue
$60.78M
Net income
$-17.40M
Diluted EPS
-0.98
Operating cash flow
$-41.20M
Free cash flow
$-42.79M
Fetching…
Sources
Revenue
$113.12M
Net income
$1.95M
Diluted EPS
-0.33
Operating cash flow
$77.12M
Free cash flow
$76.81M
Fetching…
Sources
Revenue
$315.18M
Net income
$97.48M
Diluted EPS
2.93
Operating cash flow
$-27.66M
Free cash flow
$-28.29M
Fetching…
Sources
Revenue
$58.41M
Net income
$-42.47M
Diluted EPS
-1.83
Operating cash flow
$-29.28M
Free cash flow
$-30.28M
Fetching…
Sources
Is it cheap or expensive?
Fair value $0.04 vs current price $0.89
Wall Street consensus is the average analyst price target: $1.81 (4,465.6% higher than our fair-value estimate).
Our most-likely fair value is $0.04 a share — about 95.5% below today's price of $0.89, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $31.1M. Interest coverage 6.4x.
Net debt
$31.12M
Interest coverage
6.37x
eHealth, Inc.'s profit covers its interest bill about 6.4 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
EHTH
BASELINE
eHealth, Inc.
Total debt $132.17M Interest coverage 6.37x This is the baseline the peer rows are being compared against.
Total debt $398.02M Interest coverage 1.66x -74% vs EHTH Carries about 3.8x less debt cushion than EHTH.
Total debt $12.16M Interest coverage 2.08x -67% vs EHTH Carries about 3.1x less debt cushion than EHTH.
Total debt $8.20M Interest coverage -16.20x -100% vs EHTH This peer has almost no interest-payment cushion compared with EHTH.
Total debt $176.71M Interest coverage 3.16x -50% vs EHTH Carries about 2.0x less debt cushion than EHTH.
What you should know
The case for and against EHTH
2 Rewards
2 Risks
Rewards
-
Returns 2.9% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -20.5% to -81.6% over 3 years.
-
Insider ownership is only 7.7% (peer median: 12.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
0.70x
P/B
0.05x
P/S
0.06x
EV/EBITDA
7.37x
PEG ratio
0.75x
Profitability
How much profit each dollar creates
Gross margin
100.0%
Operating margin
-81.6%
Net margin
5.4%
ROE
2.9%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
9.95x
Quick ratio
9.63x
Total debt
$132.17M
Total cash
$101.05M
Growth
How the business has been compounding
Revenue TTM
$501.69M
Revenue 5Y CAGR
0.7%
EPS TTM
-0.79
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-30.45M
Free CF TTM
$-27.59M
FCF margin
-5.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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